The study was conducted to analyse the commercial egg value chain in Ilala Municipal Council. Specific objectives were (a) To identify the marketing and distribution channels for commercial eggs and relationship among marketing agents (b) To determine the profit margin accrued by different actors in the commercial egg value chain (c) To identify factors that influence profitability for producers in the chain; and (d) To determine the marketing efficiency for commercial egg value chain in the study area. Structured questionnaires were used to collect data from 120 respondents including layer producers, traders and consumers. SPSS computer software was used to generate descriptive statistics of the value chain. On the other hand, profit margin analysis was used to determine profit accrued by the chain actors. Regression analysis was employed to test the significance of factors that influence profit level at the producers’ level. Marketing margin and correlation analysis were used to determine marketing performance (efficiency) of commercial egg value chain in the study area. Six major marketing channels for commercial egg value chain were identified. Producers obtained higher profit margins than other actors in the value chain. Packaging costs was found to be positive and significant at 1% (p<0.01) to influence profitability at the producer’s level. Marketing margins were Tshs 1506 at retail level while Tshs 433 and Tshs 573 per tray of eggs were found at wholesale and egg collectors level respectively. The study recommends support formation of groups/associations at all level of the chain; strengthening of extension services; enforcement of laws and regulations governing animal feed formulations, hatcheries and animal diseases control.Municipal Agriculture and Livestock Development Office (MALDO)